Hong Kong regulator prods pension funds on US rating downgrade implications
May 28 (Reuters) - Hong Kong's pensions regulator has told the city's pension funds they may need to adjust their investment portfolios to reflect the impact of a downgrade to the U.S. sovereign credit rating, according to a statement.
Ratings agency Moody's cut America's pristine sovereign credit rating by one notch earlier this month, the last of the major ratings agencies to downgrade the country, citing concerns about the nation's growing $36 trillion debt pile.
Pension funds regulated by Hong Kong's Mandatory Provident Fund (MPF) Schemes Authority are not allowed to invest more than 10% of their total assets in U.S. Treasuries if the U.S. is downgraded from its "Aaa" rating by an approved agency.
The Authority said it sent a reminder "recently" to pension funds about staying in compliance with the rules and protecting their members' interests, in light of "significant market events".
Investment managers "must formulate suitable compliance contingency plans and make timely and orderly adjustments to their asset allocation in response to possible market developments," the regulator said, responding to a query from Reuters about what it had told fund managers.
Bloomberg News reported last week that Hong Kong pension fund managers have flagged the risk of potential forced selling of their Treasury holdings after the Moody's downgrade.
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The Sun
16 minutes ago
- The Sun
Trump sends 700 Marines & another 2k National Guard to riot-ravaged LA as chaos spreads with arrests in NYC & Texas
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The Sun
17 minutes ago
- The Sun
Good Morning Britain chaos as host is forced to stop live segment that ‘can't be broadcast' and apologise
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Daily Mail
an hour ago
- Daily Mail
LA fights back with immigration protesters zip-tied and loaded onto buses en masse as Marines head in
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But Los Angeles Mayor Karen Bass argued the state of California is instead being used 'as an experiment' by the Trump administration seeking to test the limits of its power. 'These are not the people we were told were going to be detained, and it makes me feel like our city is actually a test case,' she said. 'A test case for what happens when the federal government moves in and takes the authority away from the state or away from local government.' She said ICE agents had struck fear through the hearts of hardworking Angelenos, who are now constantly nervous about the next raids. 'I can't emphasize enough the level of fear and terror that is in Angelenos right now, not knowing if tomorrow or tonight it might be where they live, it might be their workplace, should you send your kids to school, should you go to work,' she said. Newsom said on X he had been informed of the decision. He called the move reckless and 'disrespectful to our troops.' 'This isn't about public safety. It´s about stroking a dangerous President's ego,' Newsom said. The protests have now stretched into a fourth night in Los Angeles But both Trump and the Pentagon responded to Newsom with a greater show of force on Monday with the additional deployments. The forces have been trained in deescalation, crowd control and standing rules for the use of force, Northern Command said. These Marines are highly trained in combat and crisis response, with time in conflict zones like Syria and Afghanistan. Now, they'll be facing furious protesters - carrying gas canisters or other makeshift weapons in some instances - and have to quickly decide how to respond with an appropriate show of force. At least three buildings have been broken into and vandalized, according to LAPD chief Jim McDonnell, with 'significant damage and broken windows.' He has placed his city on a 'tactical alert', meaning LAPD officers can be mobilized and reallocated quickly to respond to incidents as they arise. The violent protests have sparked mass road closures and sweeping 'unlawful assembly' orders across the entirety of Downtown LA. McDonnell weighed in on the decision to mobilize Marines and the National Guard, raising concerns that 'without direct coordination [they] create logistical challenges and risks confusion during critical incidents.' According to a US official, troops will be armed with their normal service weapons but will not be carrying tear gas. They also will have protective equipment such as helmets, shields and gas masks. The Pentagon is working on a memo with clarifying language for the Marines that will lay out the steps they can take to protect federal personnel and property. Those guidelines also will include specifics on the possibility that they could temporarily detain civilians if troops are under assault or to prevent harm. Having the Marines deploy to protect federal buildings allows them to be used without invoking the Insurrection Act, one US official said. The Insurrection Act allows the president to direct federal troops to conduct law enforcement functions in national emergencies. But the use of that act is extremely rare. Officials said that has not yet been done in this case and that it's not clear it will be done. President George H.W. Bush used the Insurrection Act to respond to riots in Los Angeles in 1992 after the acquittal of white police officers who were videotaped beating Black motorist Rodney King. Defense Secretary Pete Hegseth tweeted late Saturday that he was considering deploying the Marines to respond to the unrest. Bondi compared the streets of LA to a third-world country on Monday night, expressing disdain for protesters and warning any violence will be prosecuted. 'We can prosecute federally people who assault state law enforcement officers and we are going to do it, we are going to prosecute them federally,' she said. 'Look at it out there, it looks like a third world country. And it's not, it's the United States of America.' On Monday, the LAPD arrived at the Federal Building to disperse a group of protesters who had gathered there. Officers were seen in riot gear and wielding batons and rubber bullets, giving a large, agitated mob of protesters five minutes to evacuate from the area. One protester shouted 'we're fighting to die' as cops set off flash bangs and deployed tear gas. The rioting is still ongoing in San Francisco as well after the violence spread on Sunday. While horrifying scenes and stories of violence emerged from Downtown Los Angeles on Sunday, officers actually made more arrests in San Francisco, with 154 taken into custody compared to the 74 people picked up in LA.
